Banana exporter Jamaica Producers’ net profit fell dramatically for the first quarter of 2007, and the situation for the rest of the year is set to be equally tough.

Unaudited group results for the first quarter ended March 24 reveal that while gross operating revenue increased by 11 per cent to J$3.16 billion (£24 million), as opposed to J$2.84bn for the year-earlier period, Jamaica Producers recorded a net loss of J$102m.

Last year, the same period saw the firm post a 30 per cent uplift in gross operating revenue, resulting in a net profit attributable to shareholders of J$122.6m.

Last year, the firm’s fresh banana business recorded a profit of J$85m in the first quarter, compared to a loss of J$55m this year, when there have been no hurricanes or severe weather patterns threatening to decimate the banana crop. The firm accounts for 90 per cent of the bananas exported from Jamaica.

The firm’s main business activities consist of the cultivation, distribution and marketing of bananas and other fresh produce, juice manufacturing and distribution and holding of investments.

Chairman Charles Johnston has stressed the importance of diversification for some time now, having introduced smoothies, soups and chips. However, the recent poor performance may lead to some contraction and a decision to slow down on projects.

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